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WorksheetsBanking law and practice_moduule -1
Total questions: 71
Worksheet time: 1hrs 13mins
Cheque is a????
A) Bills of exchange
B) promissory notes
c) Both A & B
None of the above4
An instrument in writing containing an unconditional order and unconditional undertaking are known as ------------ and ---------- respectively.
Promissory note and Bill of Exchange
Promissory notes and promissory note
Bill of Exchange and Promissory note
Bill of Exchange and Bill of Exchange
Drawee of cheque is always a -----------
Banker
Account holder
Beneficiary
None of the above
Which of the following section of NI act is mismatched??
Sec-5 deals with BOE
Sec-4 deals with Promissory note
Sec 6- Define cheque is an bills of exchange
Sec-9 deals with holders in due course
sec-10 deals with holder of Negotiable instrument
Which of the following should have with holder of instrument to get the title of holder in due course
A) Good faith
B) Proper consideration
C) Before maturity of instrument
d) all A, B and C
Which of the following statements are true regarding Demand Draft ?
a) It is a cheque
b) It is a bills of exchange
c) For the purpose of Section 131 and 138, it is treated as Cheque
d) All a ,b and C are true
e) Only b and c
Which are necessary for endorsement?
It should be signed by maker
it should be signed by holder
signature should be on the back or on the face of the instrument
All of the above
Which of the following is not true regarding Bills
If time of payment is not specified, then bill is payable on demand/at sight,
A bill which is expressed to be payable after a fixed period or after sight or on a specified day or on the happening of an event which is certain to happen is called an 'usance bill/time bill'.
The maturity date of a promissory note or a bill of exchange is the date on which if falls due
3 days of grace are allowed on promissory note or a bill of exchange not payable on demand
None of the above
What a minor can do in his/her personal capacity ????
Draw an instrument
endorse an instruments
Deliver and negotiate
Can bind all parties except himself
all of the above
Interest @ ----------- p.a. is to be paid by the parties charged on the basis of a negotiable instrument if no rate of interest is specified in the instrument (w.e.f. 30.12.1988).
15%
18%
12%
10%
Section ---- protection to paying bankers
85
80
131
138
----------------is a formal certificate issued by the notary public certifying the fact of the dishonour of bill of exchange or promissory note and is based on the noting
Protest
Noting
Suit
None of the above
Protection to collecting banker is provided under section ------------- of NI act.
131
138
85
100
Dishonour of cheques for Insufficiency etc. of funds in the account is dealt by section ----- of NI act
138
131
85
100
Return of cheques with reason 'Refer to drawer' will not attract prosecution under this section 138
True
false
A cheque given as gift/donation will not be governed by section 138 if NI act
True
False
Depends
None of the above
The Negotiable Instrument (Amendment & Misc. Provisions) Act 2002 important amendments have been made to certain provisions of the Negotiable Instrument . Which of the following is not true?/
Doubling of the imprisonment term from one year to two years
Doubling of penalty for the offence, i.e. upto twice the amount of the instrument
Doubling of the period of time to issue demand notice to drawer from 15 to 30 days
Empowering the magistrate to condone delay in filing complaint
None of the above
Where a cheque bears across its face an addition of the name of a banker either with or without the words “not negotiable”, that addition shall be deemed a crossing, and the cheque shall be deemed to be crossed specially and to be crossed to that banker is other wise known as
Cheque crossed generally
Cheque crossed specially
is a bearer cheque
None of the above
Bank’s slip or Memo having Bank’s Official mark denoting that the cheque has been dishonoured shall be presumed to be the fact of dishonour. True or False
false
true
Indian contract act was formulated in the year
1872
1932
1956
None of the above
Contract of indemnity comes under purview of ???
NI act
Indian Contract Act
IPC
None of the above
How many parties are there in contract of Guarantee??
1
2
3
4
How many parties are there in contract of Indeminity?
1
2
3
4
Which of the following combination is wrong?
a) 124- indemnity
b) 126-gurantee
c) 148- Bailment
d) 172- pledge
e) None of the above
Which of the following is not correct in relation to partnership?
It is regulated by partnership act 1932
It is an association of persons
objective is to earn profit
Any one or all can mange the firm
all of the above
The new Companies Act 2013 has prescribed the maximum number of members in case of a partnership firm should not be more than ---------- in case of partnerships.
20
10
100
None of these
RBI Act was enacted on -------------
8th March, 1934
6th March, 1934
7th March, 1934
31th March, 1934
The Standard Rate at which it (the bank) is prepared to buy or rediscount bills of exchange or other commercial paper eligible for purchase under this Act is other wise know as??
Bank rate
SLR
PLR
None of the above
The present bank rate is ???
7
6
6.75
8
Banking Regulation Act was enacted on
1949
1934
1969
1980
In India, now companies are governed by Companies Act, =======?
1956
2013
1972
1932
charges are created or evidenced or a copy thereof verified in the prescribed manner are filled with the concerned Registrar of Companies within ------ days from the date of its creation
90
60
45
30
Henceforth, in case the total borrowings of any company, whether private or public, exceeds the aggregate of its paid up share capital and free reserves, apart from temporary loans as stated above, and for sale, lease, disposal of its undertaking, including mortgage, Company shall be required to pass Special resolution u/s 180 of 2013 Act.
True
false
Limited liability partnership are to be registered under ??
Partnership act-1932
Companies act- 2013
Registration not required
None of the above
A Private Company having only one Member and at least One Director. No compulsion to hold AGM. Conversion of existing private Companies with paid-up capital up to Rs 50 Lacs and turnover up to Rs 2 Crores is other wise known as ??
Pvt ltd company
chartered company
public limited company
one person compamy
As per new companies act, Every company shall follow uniform accounting year as
1st january to 31st december
1st april to 31st march
Any date as approved in resolution
none of the above
Every Listed Company can appoint auditor . Which of following statements are correct in this regard??
individual auditor for 5 years
a firm of auditors for 10 years
his period of 5 / 10 years commences from the date of their appointment.
All are correct
Goods & Services Act was enacted in --------- and came into effect from --------.
2016 and 01.07.2017.
2017 and 01.07.2017.
2016 and 01.04.2017.
None of the above
Which of the following is not a slab of GST???
a) 5
b) 12
c) 18
d) 28
e) None of the above
IBC act proposes to establish INSOLVENCY & BANKRUPTCY BOARD to make a paradigm shift from the existing ‘Debtor in possession’ to a
Debtor in sale
Debtor choice
None of the above
Creditor in control’
Each creditor shall vote in accordance to voting share assigned if -------- % of creditor approve the resolution plan same needs to be implemented
60
75
80
51
Order of priority for distribution of assets:
• Government dues (up to 2 years)
. Insolvency related costs
• Secured creditors and workmen dues up to 24 months
• Other employee’s salaries/dues up to 12 months
• Financial debts (unsecured creditors)
• Any remaining debts and dues
• Equity
Which is of the above is wrong in order
Unsecured creditors
Equity
Government due should be next to financial debts
None of the above
Banking Ombudsman is a ------------authority functioning under India’s Banking Ombudsman Scheme 2006
legal
judicial
quasi-judicial
None of the above
Which of the following is not a pillar of KYC guidelines
Customer Acceptance Policy
Customer Identification procedure (CIP)
Risk Management ( MLRC)
Monitoring of transactions
Customer service
NTR stand for
a)Non taxable returns
b)Non transaction report
c) Non Profit Organizations Transactions Report
d) None of the above
All cash transactions of the value of more than Rupees ------- lacs or its equivalent in foreign currency needs to be reported under CTR mechanism.
10
5
3
1
Branches should report any of the above suspicious behaviour of the customer / walk-in-customer noticed by them through CBS menu.
STR
CTR
AMLALERT
RPTRA
All cash transactions, where forged or counterfeit Indian currency notes have been used as genuine will be reported by the Principal Officer (PO) to FIU-IND in the specified format (Counterfeit Currency Report – CCR) by ----------th of the succeeding month
7
10
15
21
There are three independent steps or stages in Money Laundering
-- Placement, Layering and distribution
Placement, Layering and Integration
parking, Layering and Integrat
None
Whoever commits the offence of money laundering shall be punished with the rigorous punishment for a term not less than ------ years but which may extend to ---------- yrs and shall also liable to fine, which may extend to Rs.------------ lacs.
a) 3/7/5
b) 3/5/7
c) 3/5/10
D) None of the above
FATCA
Foreign Account Tax Control Act
Forign act Tax Compliance authority
Foreign Account Tax Compliance Act
Forign Account Tax Companies Act
For approaching to OMBUDSMAN for banking complaints Which of the followings are the conditions
A) Bank has rejected the complaint and/or no reply within one month
B) period of 1 year has not elapsed after bank had rejected the representation
C) It is not subject matter already settled by Ombudsman.
D) It is not pending with any court
E) All
Any consumer individually or jointly, consumer organisation can file complaint within ------------ years from the date of cause of action preferably within 3 months can complaint under COPRA.
1
2
3
5
Which of the following authority or jurisdiction are not matched under COPRA ??
a) district Forum- complain up to 20 lacs
b) state commission - upto 100 lacs
c) National commission - 100 lacs and above
d) None
A comprehensive Banker’s Fair Practice Code prepared by Indian bank Association has been used as a bench mark standard by the BCSBI. The code provides protection to the customers on day-to-day basis on banking operations. This code was recommended by
Shri S S Tarapore Committee
Damodarn committee
Tondon Committee
Malhotra committee
Legal guardian cannot open a joint account with minor ?
True
False
No joint account of two or more MINORS TO BE OPENED??
True
False
Which of the following is true in regards to accounts opened by illiterate person??
No cheque book should be issued
No current account should be opened
Joint account of two illiterates (close relatives can be opened) – operational instructions should be jointly or survivor and not either or survivor
Joint account of illiterate with literate close relative can be opened but no cheque book should be issued (joint operation only
All options are true
Who is not competent to enter into a valid contract??/
Blind person
illiterate person
Senior citizen
Minor
● Cheque book can be issued to blind account holders?
True
false
A ------------------ is an obligation annexed to the ownership of property, arising out of confidence reposed in a person/ group of persons and accepted by him/them for the benefit of another or of another and the owner
Trust
company
club
HUF
Who can not be called as coparceners????
Widow male
widow female
girl child
Senior citizen
HUF letter should be signed by the
karta only
coparcerners
karta and all the major co-parcerners
None
Clubs, Associations, Committees, Funds etc are not a legal entity unless they are incorporated under the
Trust act
Companies Act
partnership act
None of the above
Bank can create a charge against LIC policies through???
pledge
assignment
mortgage
lien
which of the following is not matched ??/
immovable property- equitable mortgage
pledge- NSC certificate/gold
LIC policies- Assigment
Bank's own deposit - pledge
movable - hypothecation
Banker's right of lien is a ??/
particular lien
general lien
both
none of the above
Banker has right of------------- between two or more accounts maintained by a customer, if one of them is in debit and their relationship in both the accounts is of debtor and creditor
general lien
bailee
compromise
set-off
Bailment of goods for the purpose discharging financial debt is called ?
Pledge
bailment
assignment
None of the above
Cases wherein the claim of debt due to Bank is Rs----- lakh and above ,suit/application is to be field before DRT under the RBDA act 1993.
8
10
15
20
This test is being designed by TEAM BARODA ACADEMY KOLKATA ? Do you appreciate?
yes
no
